Why United Airlines Holdings, Inc. (UAL) Remains A Buy According To Bernstein

Core Insights - United Airlines Holdings, Inc. (NASDAQ:UAL) is receiving significant attention from Wall Street analysts, with a reaffirmed 'Buy' rating and a price target of $123, indicating a potential upside of nearly 36% [1] - Moody's Ratings upgraded United Airlines' corporate family rating to Ba1 from Ba2 and the backed senior secured rating to Baa3 from Ba1, reflecting improved operating performance across various revenue sources [2][3] Financial Performance - The company is projected to exceed $63 billion in revenue by 2026, with an expected operating profit of at least $5.5 billion [2] - Despite anticipated higher capital expenditures in the coming year, free cash flow is forecasted to be over $1.5 billion [3] Capital Structure and Ratings Outlook - Moody's suggests that if United Airlines effectively transitions its capital structure to unsecured debt, with a debt/EBITDA ratio reaching 2.5x, there is potential for further rating upgrades [3]